CITIC Construction Investment: Maintains "Buy" rating on JD-SW with a target price of HKD 193.07

CITIC Construction Investment released a research report stating that it maintains a "Buy" rating on JD Group-SW, with a target price of HKD 193.07, corresponding to a 12x PE for the group in 2026. Additionally, it expects the company's revenue for 2025 and 2026 to be RMB 1,324.3 billion and RMB 1,395.1 billion, respectively, representing year-on-year growth of 14.28% and 5.34%, with Non-GAAP net profits of RMB 28.166 billion and RMB 46.797 billion, respectively. The firm anticipates that JD's revenue in Q3 2025 will grow by 13.5% year-on-year to RMB 295.539 billion, with a Non-GAAP net profit of RMB 4.4 billion, corresponding to a net profit margin of 1.49%, compared to 5.06% in the same period last year. This quarter, the daily essentials category continues to show prosperity, with growth rates remaining high. On the profit side, it expects the retail main business profits to exceed expectations. Attention should be paid to JD's takeaway order volume, user engagement, sustainability of investments, and the growth situation of JD's Double 11 this year against the backdrop of national subsidy reductions